Setting Priorities – Medical Debt

With continuing uncertainty in today’s economy, the last thing consumers want to have to worry about is dealing with a heavy debt load caused by medical problems. The resulting bills can pile up and throw their finances into a downward spiral, and can even lead to bankruptcy. In a study conducted by the Commonwealth Fund in August 2008, the numbers tell a story:

• 10% - Income spent on health insurance and medical expenses by working consumers
• 39% - Percentage of consumers experiencing debt from medical bills who had depleted all of their savings
• 30% - Percentage of consumers experiencing debt from medical bills who used credit cards to pay for them

Luckily, there are reputable agencies that can guide those feeling consumed by medical debt to find manageable solutions. Our consumer credit counseling services (CCCS) agency provides objective professional advice to consumers looking for a bit of help. Here are some things to help sort your priorities:

1. Just say no to credit cards – One of the worst things you can do to is to use your credit cards to pay down medical debt. The major reason is that credit cards accrue interest while, more often than not, medical debt doesn’t.
2. Start from the source – It never hurts to ask. Contact your health care provider and inquire about possible repayment options. They may offer some sort of settlement, or at least a structured monthly payment plan.
3. Avoid dipping into retirement savings – You’d be doing yourself a disservice to borrow from your retirement. One day, you may really need those funds, so try to look for other ways to handle your current debt. The experts at our consumer credit counseling services (CCCS) agency can teach you ways to resolve debt more responsibly.
4. Know what’s most important – No matter how desperate you may feel by carrying medical debt, remember that you still need a roof over your head. Do NOT default on your mortgage payments in order to cover medical debt. You could end up losing your home.
5. Remember that help is out there – Our consumer credit counseling services (CCCS) agency reminds you that you are not alone in this. We are here to provide guidance, advice and support for debt management issues and will get you back on the right financial track.